Italian concession caterers call for rent relief, investment freeze
07/04/2020 17:48
By Francesca Landini
MILAN, April 7 (Reuters) - Italian caterers are asking for
rent cuts, relief from investment obligations and the extension
of concession contracts to cope with the health emergency, their
lobby group whose members include Autogrill AGL.MI and the
Italian unit of Mcdonald's MCD.N said on Tuesday.
The groups running outlets on motorways, in airports and a
railway stations said the government decision to limit people's
movements had dented sales at a time when they were asked to
remain open for people travelling for essential reasons.
"Our sales have fallen to near zero and so has cash flow
generation," said lobby group AIGRIM, which also represents
French group Lagardere LAGA.PA , Chef Express MARR.MI and the
Italian units of fast food chains Burger King and Kentucky Fried
Chicken.
AIGRIM, whose members employ around 30,000 people in Italy,
asked for the government's intervention to convince motorway,
airport and railway station operators in the country to cancel
rents while the country is under lockdown.
Once the restrictions are over, rents should be capped and
linked to sales, payments should be delayed and investments
blocked until sales recover to pre-emergency levels, the 11
groups represented by AIGRIM said in a statement.
The lobby also asked for catering concessions to be extended
for 12 months and for access to liquidity and bank loans under a
new government guarantee scheme. urn:newsml:reuters.com:*:nL8N2BU5T8
A source close to Autogrill told Reuters last month that the
group was in talks with airports, motorway operators and other
landlords around the world to cut rents to cope with a fall in
sales triggered by the health emergency. urn:newsml:reuters.com:*:nL8N2BJ8DB
According to Autogrill's latest balance sheet, the group
paid 983 million euros ($1.1 billion) last year in leases, rent,
concessions and royalties. Fixed costs for rents are around 400
million euros, financial analysts have calculated.
($1 = 0.9170 euros)
(Reporting by Francesca Landini
Editing by David Holmes)
((francesca.landini@thomsonreuters.com; +39 02 66129437;
Reuters Messaging: reutersitaly.thomsonreuters@reuters.net))